Fundamentals of a lot of stocks getting stretched.!! EBO,RYM,POT.Sell any and they just go higher.!!
Just hope this time when the music stops I can find a chair.!
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Sparky - I don't think they will achieve growth of 8% over the next 3 years ... let alone for 5 years
Health has achieved little growth the last few years - low top line growth and margins a struggle.
All I know about health is what percy has told me and what the numbers say .... but I know a heck a lot about Masterpet .... before and after the acquisition
My forecasts for EBOS are shown below ..... summary from a bit of number crunching right down to economic value added stuff.
So on these currently around 16 times forecast earnings with future growth of 5%-6% .... maybe a PR rating coming up
But what the heck do I know .... of course they will be better than this
Thanks Sparky and Winner69.
I too see the health sector for EBO facing headwinds.In Australia EBO are too small and need a "big" acquistion.In NZ I see little growth,and tight margins.Pharmac talk is a concern.Maybe EBO will work with them.
The animal sector seems to be where the growth is in both Australia and NZ.[The chairman told me the bigger the animal,the bigger the profit.]
I would be closer to winner69's projections.[thank you for sharing.]
However,I have a history of being wrong with EBO.Anytime over the last 22 years that I have sold any shares,the SP has gone up.
As Sparky has found, I haven't done too badly with stocks I have brought with EBO money.
So true ... big dogs eat more biscuits and bigger collars than smaller ones eh ... and eat more than little pussy cats eh .... but heck must be a good margin on the cat food and stuff they sellQuote:
Originally Posted by percy;399931
.[The chairman told me the bigger the animal,the bigger the profit.
I note (as a customer) Masterpet are starting to make some changes to their system, probably to save a few pennies .... maybe not for the good. Been a few subtle changes to their business website for instance.
Bigger the naimal the bigger the profits ... i like it .... a bit like good ole Gerry Harvey hoping more couples separate .... more couples splitting means more homes needing my stuff.
Sometimes business is so simple .... why does everybody try to make it more complex
Even bigger animals;horses and cattle.!Horse racing industry.Also working dogs need good food.Farmers no longer killing a sheep for feed.
Not sure about the web site,however EBO will make changes to distribution.EBO have always prided themselves on logistics and systems.Their ordering,picking and distribution is very clever.
EBO has always been customer driven,so I can not see them letting down customers.
Half year profit was up 29% on last year!
About to pay 17.5c Interim Dividend, also up 29% on last year!!
Full year must be up and the final dividend must be higher than last years 20.5c, right?!!!
This growth is bound to be sustainable, it IS a new paradigm and this time it really IS different!!!!
Look at that dividend yield and then trying asking the bank for the same!!!!!
So $9.33 a share is ludicrous, I would gladly pay twice as much for this share!!!!!!
Best wishes
Paper Tiger
P.S. The Paper Tiger is being a little sarcastic :p here but if you wish to buy at these prices and higher prices then that is entirely up to you.
Disc. The Tiger holds EBOS.
WTF .... wipe out day on the worlds markets but EBO hits another high
Still haven't sold yet percy ..... waiting for it to stop going up
Must be plenty of dosh on pet stuff .... if I lucky they might announce another acquisition and then we can see the shareprice go to 15 bucks
It's going great! IRR for my EBO holdings is up to 126.5% now. Happily I got my partner and sister to buy EBO for their portfolios as well.
The recent DRIP was at $8.6764 and yesterdays close was at $9.55
Glad I took the DRIP option.
Hanging in over 960
Problem for me being a reluctant holder (.but it continues to go up and up) is that on current volumes disposing of the bundle I have could be difficult
Mr P always warned about liquidity didn't he .....so come on guys rev up some decent new buyers to help me out
Never been a problem for the last 20 years.
We have seen Klaus sell down,Mark Stewart sell out and others,buy and sell.
Should you have a large enough holding I expect an insto would be pleased to take them off your hands.
The trust I am on sold 90,000 no trouble a couple of years ago,as EBO was overweighted.
Bored today so looked at mr Graham's intrinsic value methodology in reverse for EBO
His formula implies a growth factor of 4,7% for EBO at current price. And that is using his 8.5 factor as a proxy pe for a low growth company.
Hey if it we used say 10 implied EBO growth is only 4% pa
Good good EBO is still hugely discounted to a realistic growth expectation for EBO. My post above said nearly 6%pa for the next 4 years but I am usually so wrong we maybe should use 8%pa. Mr Graham would reckon EBO worth 13bucks or more.
Yippee .... No urgency to sell now. I am happy .....another 50% upside
Is Mr Graham a load of the proverbial - or is expectations of growth of 5% pa just unrealistic ( for any company) - or is the market really stupid at underpricing things - or has the world gone mad - or maybe just me that has gone mad already